China would continue to invest more in new computer chipmaking equipment than any other geographical region this year, despite a significant year-over-year decline, followed by South Korea and Taiwan, industry group SEMI said in a report yesterday.
In its fabrication plant spending forecast, SEMI said global investments in gear would rise 2 percent this year to US$110 billion, the sixth consecutive year in a row of growth, due to investment in tools needed to make chips for artificial intelligence (AI).
The impact of AI would likely be even stronger next year, SEMI added, when investment is expected to grow by another 18 percent.
Photo: AFP
China is the largest consumer of chips, and firms there have been expanding chipmaking capacity for years, but they began a huge sprint in mid-2023 and last year with government support, as part of a drive to lessen dependence on imported chips in response to restrictions imposed by the US government.
ASML Holding NV, the largest chip equipment manufacturer, forecasts sales of 32 billion to 38 billion euros (US$34.5 billion to US$40.9 billion) for this year, implying market share of more than 25 percent for its sub-sector, lithography, where it enjoys a dominant position.
Other top equipment firms include Applied Materials Inc, KLA Corp, LAM Research Corp and Tokyo Electron Ltd, though Chinese equipment makers such as Naura Technology Group Co (北方華創), Advanced Micro-Fabrication Equipment Inc (AMEC, 中微半導體) and Huawei Technologies Co (華為) affiliate SiCarrier Technologies Co (新凱來) are growing fast.
Photo: AFP
Chinese spending is expected to fall to US$38 billion this year, down 24 percent from US$50 billion last year, but still ahead of US$21.5 billion in South Korea, where SK Hynix Inc and Samsung Electronics Co are expanding capacity for memory chips.
Spending in Taiwan, where leading foundry Taiwan Semiconductor Manufacturing Co (台積電) manufactures AI chips for Nvidia Corp and others, is projected at US$21 billion.
Among other regions, the Americas and Japan are each expected to spend US$14 billion this yaer, while Europe would spend US$9 billion, SEMI said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
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